Integrating Development and Finance

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bbcon 2013

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Integrating Development and Finance

  1. 1. 10/7/2013 #bbcon 1 Integrating Development and Finance PRESENTED BY JONATHAN HOWELL
  2. 2. 10/7/2013 #bbcon 2 • Describe the Needs of the Development and Finance Offices • Speak the Same Language • Avoid Common Problems • Describe Best Practices for Integration AFTER THIS SESSION, YOU’LL BE ABLE TO:
  3. 3. 10/7/2013 #bbcon 3 Development • Acknowledging and receipting donors quickly and accurately • Accurate reporting on gift source and gift designation • Answering donors’ questions • Securing the next gift! • Acquiring new donors Finance • Recording cash, revenue, and receivables quickly and accurately • Ensuring that designated revenues are tracked and expensed/released correctly • Reconciling data entry, reports, and bank accounts • Presenting accurate and usable financial statements • Maintaining control of cash WHAT DOES EACH OFFICE CARE ABOUT?
  4. 4. 10/7/2013 #bbcon 4 Development keeps us in business…Finance keeps us out of jail! THE SHORT VERSION
  5. 5. 10/7/2013 #bbcon 5 • Integration: How we tell Finance about the gifts Development has received • Gift: Cash, pledge, stock/property, in-kind, or planned • Pledge: A legally enforceable promise to give • Stock/Property: Must be sold to obtain value for your organization • Gift-in-kind: Valuable to your organization as-is • Restriction/Designation: A donor’s direction on how or when a gift must be spent • Journal Entries: Debits and credits entered in the General Ledger to account for gifts SPEAKING THE SAME LANGUAGE
  6. 6. 10/7/2013 #bbcon 6 HOW SHOULD THE DATABASE INTEGRATION LOOK? Too many orgs attempt this: When it should be this: CRM Accounting CRM Accounting
  7. 7. 10/7/2013 #bbcon 7 • Only the reporting from Finance is “trustworthy” • We attempt to report development info out of our accounting system • Reports don’t match • Donor designations are more specific in one database than the other • Pledges are either not recorded, or are constantly written off • Timing of cash entries makes bank reconciliation difficult • Records are adjusted constantly • People don’t talk to each other COMMON ISSUES
  8. 8. 10/7/2013 #bbcon 8 • Let each system do its job • Determine how much latitude to grant donors when designating gifts • Record pledges as receivables when they’re made • Don’t call something a pledge unless it’s truly a pledge • Post to one or two bank accounts… • …or post to a single clearing account • Post daily • Reconcile weekly • Don’t enter a gift until you know everything you need to know • Adjustments should be the exception, not the rule • Talk to each other!!! BEST PRACTICES
  9. 9. 10/7/2013 #bbcon 9 “If you’re going to integrate, you’ve got to communicate!” KEY QUOTE
  10. 10. 10/7/2013 #bbcon 10 TWEET ABOUT YOUR SESSION #SESSION #TRACK #PRESENTER

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